GBP/USD May breach lower, while AUD/USD higher

Elliott Wave Analysis: GBP/USD & AUD/USD

GBP/USDThe British pound/U.S. dollar (GBP/USD) currency pair is undergoing a sharp fall away from 1.2800region where potentially corrective Wave 2 had ended. If that is the case, then we will now see a five-wave fall develop within the following Wave 3 and a breach below the previous swing low of Wave 1 at 1.2690 level.

GBP/USD, 1 hour

AUD/USD The Aussie/U.S. dollar (AUD/USD) currency pair is trading overlapping and choppy for the last few sessions, which could mean a probable triangle correction could be in the making. Well if that is the case, then ideally, we will see another and final push higher into Blue Wave five of 5. Ideally, this will happen once. Current price activity is breaching above the upper triangle line and unfolds a new five sub-wave development within the final wave. However, be aware, the upside can be limited around the Fibonacci ratio of 161.8.

About the Author

Gregor Horvat, based in Slovenia, has been in the forex markets since 2003. He is a technical analyst and individual trader who has worked for Capital Forex Group and TheLFB.com. He also is founder of forex services on www.ew-forecast.com. EW-Forecast.com provides technical analysis of the financial markets, highlighting behavioral patterns based on the Elliott Wave Principle (EWP). Website: http://www.ew-forecast.com/